Intraday Market Update, Thursday, 10/10/2002 11:00:00 AM ET

Another low, another rally

by Jeff Bailey

After hitting some new lows in the Dow Industrials and the S&P
500 Index, the major market averages have once again rallied from
those lows and now trade at their best levels of the session.

After a mixed open, the Dow Industrials (INDU) 7,401 +1.57% have
staged a 203 point reversal from their lows of 7,197, which came
very close to what could be a psychological 7,200 level of
support. Dow gains are lead by banking giant Citigroup (NYSE:C)
$28.14 +4.6%, chemical giant Du Pont (NYSE:DD) $37.66 +4.23% and
semiconductor bellwether Intel (NASDAQ:INTC) 14.04 +4.23%.

The CBOE Internet Index (INX.X) 58.20 +6.18% is among the sector
leaders after trading a 52-week low on Tuesday. Sector gains are
being spurred on by Yahoo! Inc. (NASDAQ:YHOO) $12.14 +21.54%
after reporting better-than-expected earnings last night.

After a weak opening, retailing stocks as depicted by the S&P
Retail Index (RLX.X) 25.30 +0.41% edge into positive territory
after spiking to a 52-week low of 244.92 earlier in the morning.
Earlier this morning, the sector found mixed reports after JC
Penney (NYSE:JCP) $14.41 -2.37% reported a -3.1% decline in
September department store comparables, Men's Warehouse (NYSE:MW)
$10.14 -5.84% lowered it Q3 outlook to $0.10 per share, which was
well below consensus of $0.20 per share, while discounter Costco
(NASDAQ:COST) $31.12 +2.20% reported Q4 EPS of $0.52, which beat
estimates by $0.03 per share.

Other retailers had Michaels Stores (NYSE:MIK) $39.20 -0.58%
reporting a 10% rise in September same-store sales, while BJ's
Wholesale (NYSE:BJ) $15.40 -4.6% guided Q3 outlook lower to a
range of $0.16-$0.18 and Q4 outlook to $0.80-$0.82, which were
both below consensus of $0.42 and $0.87 respectively.